Chuy’s Holdings (NASDAQ: CHUY) and The Habit Restaurants (NASDAQ:HABT) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitabiliy, dividends, analyst recommendations and valuation.

Valuation and Earnings

This table compares Chuy’s Holdings and The Habit Restaurants’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chuy’s Holdings $339.46 million 1.16 $41.53 million $1.02 22.79
The Habit Restaurants $295.49 million 1.11 $29.76 million $0.27 60.00

Chuy’s Holdings has higher revenue and earnings than The Habit Restaurants. Chuy’s Holdings is trading at a lower price-to-earnings ratio than The Habit Restaurants, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Chuy’s Holdings has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500. Comparatively, The Habit Restaurants has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Chuy’s Holdings and The Habit Restaurants, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chuy’s Holdings 0 7 1 0 2.13
The Habit Restaurants 0 1 4 0 2.80

Chuy’s Holdings currently has a consensus target price of $29.71, suggesting a potential upside of 27.80%. The Habit Restaurants has a consensus target price of $19.38, suggesting a potential upside of 19.60%. Given Chuy’s Holdings’ higher possible upside, analysts clearly believe Chuy’s Holdings is more favorable than The Habit Restaurants.

Profitability

This table compares Chuy’s Holdings and The Habit Restaurants’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chuy’s Holdings 5.09% 11.81% 7.73%
The Habit Restaurants 1.73% 5.48% 2.41%

Institutional and Insider Ownership

98.4% of Chuy’s Holdings shares are held by institutional investors. Comparatively, 98.8% of The Habit Restaurants shares are held by institutional investors. 3.3% of Chuy’s Holdings shares are held by insiders. Comparatively, 5.8% of The Habit Restaurants shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Chuy’s Holdings beats The Habit Restaurants on 8 of the 14 factors compared between the two stocks.

Chuy’s Holdings Company Profile

Chuy’s Holdings, Inc. operates Chuy’s, a restaurant concept offering a distinct menu of authentic, freshly prepared Mexican and Tex-Mex inspired food. As of December 25, 2016, the Company operated 80 Chuy’s restaurants across 16 states. The Company offers the same menu during lunch and dinner, which includes enchiladas, fajitas, tacos, burritos, combination platters and daily specials, complemented by a range of appetizers, soups and salads. Each of the Company’s restaurants offers a range of homemade sauces, including the signature Hatch green chile and creamy jalapeno sauces. The Company also offers a full-service bar in all of its restaurants providing its customers a range of beverage offerings, featuring a selection of specialty cocktails including its signature on-the-rocks margaritas made with fresh, hand-squeezed lime juice, and the Texas Martini, a made-to-order, hand-shaken cocktail served with jalapeno-stuffed olives.

The Habit Restaurants Company Profile

The Habit Restaurants, Inc. (Habit Burger Grill) is a fast casual restaurant company. The Company is engaged in preparing made-to-order char-grilled burgers and sandwiches featuring tri-tip steak, grilled chicken and sushi-grade albacore tuna cooked over an open flame. In addition, it offers sides, shakes and malts. The Company prepares its burgers with char-grilled preparation, topped with caramelized onions, melted cheese, lettuce and tomatoes. It operates a range of restaurant formats, including end-cap, free-standing, inline, end-cap drive-thru and traditional stand-alone drive-in, primarily within suburban shopping centers and retail settings. As of December 27, 2016, the Company had 172 locations in 15 markets in 10 states and the United Arab Emirates, including franchised/licensed locations (excluding six licensed locations in Santa Barbara County, California).

Receive News & Ratings for Chuy's Holdings Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Chuy's Holdings Inc. and related companies with MarketBeat.com's FREE daily email newsletter.